Author: Sreelatha M

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Beyond

Few states ban sale of analogue dairy products

Gujarat has imposed a statewide ban on the manufacture, storage, transportation, distribution and sale of non-standard analogue paneer, cheese and butter, citing concerns over food safety, consumer protection and misleading products being sold as dairy items.

The decision was announced by Gujarat Health Minister Praful Pansheriya as the state steps up its crackdown on products that imitate traditional dairy foods without meeting prescribed standards. The prohibition has been introduced under the Food Safety and Standards Act, 2006.

The move is aimed at ensuring that consumers receive genuine and safe dairy products and are not misled into buying cheaper substitutes as if they were made from milk. Authorities have warned that individuals and food business operators found violating the order could face legal action under the food safety law.

Analogue dairy products are designed to look and behave much like conventional paneer, cheese or butter but are not necessarily made entirely from milk. Depending on the product, manufacturers may use ingredients such as vegetable fats, starches, milk proteins, emulsifiers and other additives to achieve a similar texture, appearance or taste.

The concern for regulators is not simply that these products are cheaper alternatives. The bigger issue is whether they are being properly identified and sold to consumers. A customer buying what they believe is dairy paneer, for instance, may not realise that the product is an analogue or non-dairy substitute.

This distinction is particularly important because genuine paneer is a milk-based food and is valued for its protein and other nutrients. Analogue products can have a different nutritional profile, depending on the ingredients used. Authorities are therefore focusing on product standards, labelling and consumer awareness alongside enforcement.

Gujarat’s decision comes just days after Maharashtra announced a statewide ban on analogue paneer. The Maharashtra Food and Drug Administration imposed a one-year prohibition on the manufacture, storage, transportation, distribution and sale of analogue paneer, citing food safety violations and consumer protection concerns.

Maharashtra’s action followed concerns raised through food testing. Reports said more than 35% of recent paneer samples tested in the state failed quality tests, with vegetable fat adulteration emerging as a concern. The state subsequently moved to prevent the production and sale of the non-dairy imitation product.

Chhattisgarh has also taken similar action. The state imposed a one-year ban on non-standard dairy analogue products, including paneer, cream and butter. The restrictions cover their manufacture, processing, storage, transportation, distribution and sale.

With Gujarat now joining Maharashtra and Chhattisgarh, the issue of analogue dairy products has moved into sharper national focus. The developments indicate growing attention from state authorities towards food adulteration, misleading labelling and the quality of products sold to consumers.

For Gujarat, the decision also has significance because of the state’s strong dairy industry. Authorities have said the move is intended not only to protect consumers but also to safeguard the legitimate dairy sector from products that may imitate traditional dairy foods without following the same standards.

The ban is likely to affect food businesses, restaurants, caterers, manufacturers and distributors that use or sell paneer, cheese and butter. Businesses will now need to ensure that their products meet the applicable food safety requirements and that customers are not misled about their composition.

For consumers, the move could mean greater scrutiny of paneer and other dairy products available in the market. Experts and food authorities have repeatedly advised buyers to check packaging, ingredient lists, manufacturer details and quality certifications rather than relying only on appearance or price.

Analogue paneer can look remarkably similar to regular paneer, which makes it difficult for consumers to identify the difference simply by looking at it. That is why proper labelling and enforcement remain important parts of the food safety system.

The Gujarat government has made it clear that public health is the primary reason behind the prohibition. The state wants food businesses to follow prescribed standards and prevent consumers from being unknowingly exposed to products that do not meet those requirements.

The action also puts the spotlight on the wider challenge of food adulteration in India. As demand for affordable food products rises, manufacturers can be tempted to use lower-cost ingredients to replicate popular products. Regulators, meanwhile, face the challenge of ensuring that innovation and cost reduction do not come at the expense of food quality or consumer safety.

The latest bans could also encourage greater awareness among consumers about the difference between dairy and non-dairy products. While an analogue product is not automatically unsafe simply because it is not made entirely from milk, selling it without clear disclosure or allowing it to fall below prescribed safety standards can create serious consumer concerns.

For now, Gujarat’s statewide prohibition sends a clear message to food manufacturers and sellers: products marketed as paneer, cheese or butter must comply with the applicable food safety requirements, and consumers must not be misled.

With Maharashtra, Chhattisgarh and Gujarat taking similar measures, scrutiny of analogue dairy products is likely to increase across other states as well. The focus will now be on enforcement, food testing and ensuring that the products reaching consumers are both accurately labelled and safe to eat.

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Corporate

Sensex gains over 250 points, Nifty holds above 24,650

Equity markets traded higher on Thursday, with the benchmark Sensex gaining more than 250 points and the Nifty 50 holding above the 24,650 mark. Investors found some comfort in a better-than-expected June-quarter earnings season and hopes of a diplomatic resolution to the Middle East crisis, although the overall market remained selective.

The market’s tone was helped by buying in banking, pharmaceuticals, healthcare, chemicals, real estate and oil and gas stocks. Select midcap shares also attracted interest. At the same time, investors remained cautious in auto, IT, media, metal, private banking, FMCG and cement stocks, keeping the broader market from turning uniformly bullish.

Among the prominent gainers, HCL Technologies and ICICI Bank were among the early leaders in the Sensex pack. Their gains helped the benchmark index stay firmly in positive territory.

Outside the frontline indices, Hindustan Aeronautics Ltd (HAL) was one of the standout performers. Its shares jumped more than 6% for a second consecutive session after the company’s annual report highlighted a strong FY26 order book of around Rs 2.55 lakh crore. The order pipeline provides the defence major with revenue visibility for the next seven to eight years. The company is also looking to accelerate production by improving its supply chain, expanding capacity and investing in infrastructure.

Navin Fluorine International was another major mover, with the stock surging around 11% after its June-quarter profit more than doubled. The strong earnings performance renewed buying interest in the specialty chemicals company. Neuland Laboratories also gained more than 6% after reporting a 975% year-on-year jump in first-quarter profit, making both stocks prominent among the day’s earnings-driven movers.

PB Fintech, the parent company of Policybazaar, also remained in focus. Its shares rose around 2% after the company reported a 92% year-on-year increase in Q1 FY27 net profit to Rs 163 crore. The growth was supported by higher insurance premiums, stronger operating revenue and improved margins. However, analysts remained cautious about the stock’s valuation, with Morgan Stanley and Nomura seeing significant downside risks.

Sterlite Technologies gained around 4% after announcing an international order worth Rs 1,760 crore, adding another stock-specific trigger to the session. Meanwhile, newly listed Juniper Green Energy made its market debut at a 9% premium over its IPO price, giving investors another point of interest in the primary-market segment.

The broader market, however, did not show the same strength as the headline indices. Nine of the 16 Nifty sectoral indices were reported to be lower, reflecting a mixed investment mood. The divergence suggests that investors are still rotating between sectors and individual stocks rather than making broad-based bets.

Global cues also remained mixed. S&P 500 futures edged higher, while Japan’s Topix declined. Australia’s benchmark gained, whereas Hong Kong’s Hang Seng fell sharply. The Shanghai Composite and Euro Stoxx futures were marginally positive. The mixed overseas signals meant that domestic earnings and company-specific developments continued to play a major role in determining the direction of Indian stocks.

Market participants are also keeping a close eye on the weekly derivatives expiry, which could lead to increased volatility during the later part of the session. The market is adjusting to changes linked to the Closing Auction Session, which had contributed to sharp swings in the previous session. The India VIX had declined 1.5% to 12 on Wednesday, suggesting that some immediate anxiety had eased.

From a technical perspective, the 24,650 level is important for the Nifty 50. Geojit Investments’ Chief Market Strategist Anand James said a sustained move above 24,650 could be an early indication of a potential breakout, while 24,550 was identified as the day’s downside marker. The next important hurdle is around 24,775.

Investors are therefore balancing optimism over corporate earnings with concerns around valuations, global uncertainty and foreign fund flows. The latest market action suggests that buyers are returning, but they remain selective.

For now, the focus remains on whether the Sensex and Nifty can hold their gains and whether the Nifty can move decisively beyond 24,650. A sustained breakout could improve sentiment further, while failure to hold the level may bring back profit-taking.

Foreign institutional investor activity, crude oil prices and the rupee’s movement against the dollar will also remain important triggers, as traders assess the sustainability of the current market recovery.

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Corporate

Manipal Health shares rise 11% in market debut

Manipal Health Enterprises made a positive debut on the Indian stock exchanges on Wednesday, with shares listing at a premium of around 11% over the initial public offering (IPO) price. The strong opening reflects investor interest in one of India’s largest private hospital networks, even as concerns remain about its rich valuation and debt levels.

The Manipal Health share price opened at ₹652 on the National Stock Exchange (NSE), a 10.5% premium to its issue price of ₹590. On the Bombay Stock Exchange (BSE), the stock began trading at ₹655, gaining 11.01%. The shares later touched ₹653.10 on the NSE, taking the company’s market value to about $9 billion.

The market debut came after Manipal Health raised ₹9,275.22 crore through its IPO, making it one of India’s biggest public offerings of 2026. The issue was the country’s second-largest IPO of the year, behind SBI Funds Management. The offering attracted strong institutional demand despite relatively cautious participation from retail investors.

The IPO was open for subscription between July 29 and July 31. It was subscribed 4.92 times overall, with investors bidding for more than 443 million shares against around 90 million shares available after adjustments for anchor investors. Qualified institutional buyers showed the strongest interest, with their portion subscribed 8.25 times. The non-institutional investor category was subscribed 1.02 times, while the retail portion was subscribed 0.93 times.

The difference between institutional and retail demand was partly linked to concerns over Manipal Health’s valuation. At the upper end of its IPO price band, the company was valued at about 84.65 times its projected fiscal 2026 earnings. That was higher than the valuations of major listed hospital companies such as Apollo Hospitals, Fortis Healthcare and Max Healthcare, which were trading at lower earnings multiples.

Still, investors appear willing to pay a premium for Manipal Health’s scale and long-term growth prospects. Backed by Singapore state investment firm Temasek, the company has built a large pan-India healthcare network. It operates 49 hospitals with more than 13,000 beds, making it India’s largest multispecialty hospital network by bed capacity.

The company’s growth has been driven by both expansion and acquisitions. Its network now covers a large part of India’s organised private healthcare market, giving it a presence across multiple cities and regions. This footprint could help Manipal Health benefit from rising demand for specialised medical services as India’s population ages and lifestyle-related and chronic diseases become more common.

The hospital sector has also been attracting increasing attention from global investors. Large investment firms have been putting money into India’s healthcare market, encouraged by rising healthcare spending, greater demand for quality treatment and opportunities to consolidate a fragmented hospital industry. Manipal Health’s listing therefore comes at a time when the broader Indian healthcare sector is attracting strong domestic and international interest.

However, the company’s rapid expansion has also resulted in significant borrowing. A major purpose of the IPO was to strengthen its balance sheet. Manipal Health plans to use a substantial portion of the funds raised to repay or prepay borrowings at its subsidiary, Manipal Hospitals.

The company also intends to use part of the IPO proceeds to acquire a minority stake in Sahyadri Hospitals. The move would strengthen its position in the Indian hospital market while supporting its strategy of expanding through acquisitions and increasing its presence in important healthcare markets.

Manipal Health is not stopping with its current network. The company plans to invest around ₹4,000 crore to expand its bed capacity by more than 18%. The expansion is expected to add about 2,400 beds over the next three to four years. If implemented as planned, the additional capacity could support revenue growth while allowing the hospital chain to serve more patients.

The company’s growth plans put it in direct competition with established listed hospital chains. Apollo Hospitals, Max Healthcare and Fortis Healthcare are among the key players investors will compare Manipal Health with after its listing. Apollo, for instance, currently has nearly 10,000 beds and has set its own target of reaching around 13,000 beds by fiscal 2030.

For investors, the key issue now is whether Manipal Health can maintain its earnings growth quickly enough to support its premium valuation. A strong listing provides an encouraging start, but the company will have to demonstrate that its expansion strategy can translate into sustainable profits, lower debt and stronger cash generation.

The company’s stock market debut nevertheless marks an important milestone for India’s healthcare industry. With more than 13,000 beds, a nationwide network and plans for further expansion, Manipal Health has entered the listed market with considerable scale.

The immediate 11% listing gain shows that investors are confident about the long-term healthcare opportunity in India. But sustaining that confidence will depend on execution. For Manipal Health, the next phase will be about balancing expansion with financial discipline and proving that its growing hospital network can deliver consistent returns to shareholders.

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Corporate

Sensex rallies 450 points, Nifty trades above 24,600

The markets rebounded strongly on Wednesday, August 5, with the Sensex climbing more than 450 points and the Nifty 50 holding above 24,600 in morning trade. Falling crude oil prices, sustained foreign institutional investor buying, positive global cues and the Reserve Bank of India’s decision to keep the repo rate unchanged at 5.25% helped lift investor sentiment.

The Sensex rose as much as 0.8% during the session, while the Nifty also moved higher after Tuesday’s decline. At around 11 am, the Nifty was at 24,650.15, while the Sensex was holding gains of more than 400 points. The recovery came after the benchmark indices had snapped a four-session winning streak in the previous session.

Among the major Sensex gainers, InterGlobe Aviation (IndiGo) and Bharti Airtel were at the forefront, with both stocks rising up to around 3% in early trade. Larsen & Toubro, Mahindra & Mahindra and UltraTech Cement were also among the stocks supporting the benchmark. IndiGo led the early Sensex gainers with a rise of about 2.25%, according to market updates.

Ola Electric was another major stock in focus, jumping more than 8%. The electric vehicle maker gained after signing a memorandum of understanding with Axis Energy to deploy up to 20 GWh of battery energy storage systems by 2032. The agreement is the first major partnership for Ola Mahashakti, the company’s planned energy-storage platform.

Deepak Nitrite also attracted buyers, rising around 4% after reporting a sharp 209% year-on-year increase in first-quarter FY27 profit. Revenue rose 36% during the quarter, giving investors another earnings-related trigger for the stock.

However, the market recovery was not broad-based. Protean eGov emerged among the notable losers, with its shares falling around 6% despite a 19% year-on-year rise in first-quarter revenue to ₹251 crore. The weak stock reaction showed that investors remained selective and were not rewarding earnings growth automatically.

BSE Ltd was another stock under pressure, declining around 2% despite reporting a 62% year-on-year jump in first-quarter net profit to ₹874 crore. The contrasting performance highlighted the cautious approach adopted by investors towards several individual stocks despite the broader market rally.

Muthoot Finance also remained under pressure. Its shares had fallen nearly 8% over the previous two trading sessions after the gold-loan company reported weaker net interest margins and loan yields for the June quarter. Higher funding costs and increasing competition from banks and other financial companies are expected to remain concerns for the lender.

Sectoral trends remained mixed. Realty, REITs, PSU banks and auto stocks attracted buying interest, while healthcare, pharma, private banks and IT stocks faced selling pressure. The uneven movement suggested that investors were rotating between sectors rather than making broad-based bets across the market.

A major support for Indian equities came from lower crude oil prices. Brent crude slipped below the $80-a-barrel level amid hopes of a possible agreement between the US and Iran. For India, lower crude prices are generally positive because the country depends heavily on imports to meet its energy requirements. Cheaper oil can ease inflationary pressure, support the rupee and reduce the pressure on the country’s import bill.

The rupee also strengthened, opening below ₹95 per US dollar for the first time since July 8, at around ₹94.92. The stronger currency added to the positive market mood.

Investors were also closely watching the RBI’s monetary policy decision. The Monetary Policy Committee kept the repo rate unchanged at 5.25%, while retaining a neutral stance. The RBI raised its FY27 real GDP growth forecast to 6.7% from 6.6%, while lowering its FY27 CPI inflation forecast to 5% from 5.1%.

The market was also taking cues from global equities. US markets had ended at record highs, while several Asian markets advanced on expectations of easing geopolitical tensions. Japan’s Nikkei futures and Topix were particularly strong, while US stock futures also remained positive.

At the same time, traders remained cautious about the new closing auction session (CAS) for futures and options stocks. The mechanism had contributed to unusual price movements during Tuesday’s expiry session, with differences between prices around 3:30 pm and the final closing levels. Analysts said the changes had increased volatility and created complications for some derivatives-linked strategies and arbitrage funds.

The combination of softer crude prices, stronger foreign fund flows, resilient corporate earnings and supportive global markets has improved sentiment. Still, the mixed sectoral performance and sharp movements in individual stocks such as Protean eGov, BSE and Muthoot Finance show that investors remain selective.

With the Nifty holding above 24,600 and the Sensex gaining more than 450 points, traders will now watch whether the benchmarks can sustain their recovery through the remainder of the session. Earnings, foreign fund flows, crude oil prices, the rupee and developments around the new market closing mechanism are likely to remain key drivers of the next move.

Categories
Technology

WhatsApp users face media-sharing outage

WhatsApp users across several countries were left frustrated after a temporary outage disrupted the sharing of photos, videos, stickers and other media on the messaging platform. The problem surfaced on Monday, August 3, and continued to generate complaints into the following day, with thousands of users reporting that multimedia files would not upload or send.

For many users, the experience was confusing because WhatsApp itself appeared to be working normally. Text messages could still be sent and received, while attempts to share a photo or video simply got stuck. In several cases, the selected image appeared in the chat but remained stuck on a loading screen before eventually showing a “retry” option.

The disruption was reported by users in several countries, including India, the United States, the United Kingdom, Mexico and other regions. Outage-tracking services recorded a sharp increase in complaints, pointing to a wider WhatsApp service disruption rather than an isolated problem affecting individual phones or internet connections.

One of the most relatable aspects of the WhatsApp outage was how users initially assumed the problem was on their end. Some switched between Wi-Fi and mobile data, restarted their phones or tried reinstalling the app, only to find that the problem remained.

One user said they had initially thought their Wi-Fi connection was poor, only to discover that WhatsApp itself was experiencing problems. Others described repeatedly trying to send photos and getting the same “retry” message.

The problem appeared particularly frustrating for users who rely on WhatsApp to share photographs, videos and documents for work, family communication and everyday conversations. For some, stickers were also affected, making even simple chats feel unusually restricted.

Reports shared online suggested that the issue was not necessarily affecting every type of media or every user in exactly the same way. Some users said older photographs could still be sent, while newer photos or screenshots failed to upload. Others reported that text messages continued to work normally even when images and videos would not go through.

The good news for users was that the disruption appeared to ease after several hours. LiveMint reported that outage reports on Downdetector were declining across different countries, suggesting that WhatsApp services were gradually returning to normal. However, at the time of reporting, Meta and WhatsApp had not publicly provided a detailed explanation for what caused the media-sharing problem.

That lack of an immediate explanation left users speculating about whether the issue was linked to WhatsApp servers, media-upload systems or another technical fault. There was no indication that users needed to change their phones, internet connections or account settings to resolve the problem.

The incident also served as a reminder of how dependent everyday communication has become on messaging platforms. WhatsApp is no longer used simply for sending text messages. Families share photographs, businesses exchange documents, students send assignments, and people use videos, voice notes, stickers and Status updates as part of routine communication.

When even one part of the service stops working, the impact can quickly become noticeable.

Alongside the media-sharing outage, WhatsApp users in India also reported another issue involving accounts being temporarily placed under review.

A WhatsApp spokesperson said the company continuously works to prevent misuse of its platform and acknowledged that its enforcement systems can sometimes make mistakes. The company said that when such errors occur, it tries to restore affected accounts as quickly as possible.

The account-review reports were separate from the media-sharing disruption and should not automatically be interpreted as evidence that the outage was caused by account restrictions.

For users still experiencing problems sending photos, videos or stickers, the safest approach is to wait and retry once WhatsApp services stabilise rather than repeatedly reinstalling the app. Uninstalling WhatsApp during an outage can create additional problems, particularly if important local data or media has not been backed up.

As WhatsApp services gradually returned to normal, outage reports began to decline across regions. The incident highlighted how heavily users rely on the platform for everyday communication, from sharing family photos and videos to exchanging work documents.

While the exact cause of the media-sharing disruption remained unclear, users were advised to retry uploads once services stabilised. WhatsApp has not indicated that users need to change their devices or internet connections to resolve the issue.

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1 Minute-Read

WhatsApp faces outage, media sharing hit

WhatsApp users across several countries faced a temporary outage that disrupted the sharing of photos, videos, stickers and other media.

Thousands of users reported failed uploads, while text messages continued working for many. The disruption led some users to switch between Wi-Fi and mobile data or restart their phones, initially assuming the problem was with their internet connection.

Outage reports later began declining, suggesting services were returning to normal. Separately, some Indian users reported seeing “Account in review” notifications.

WhatsApp said its enforcement systems can sometimes make mistakes and that affected accounts are restored as quickly as possible.

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Beyond

Zee says SEBI order won’t hit ₹3,144 cr fundraise

Zee Entertainment Enterprises Ltd (ZEEL) has said a recent order by the Securities and Exchange Board of India (SEBI) will not directly affect its proposed ₹3,144-crore fundraise, even as legal experts warn that the regulatory action could make the capital-raising exercise difficult to execute.

The company said it is reviewing the SEBI order and has sought advice from legal experts. Zee maintained that it remains committed to completing the fundraising plan, which received shareholder approval just days before the regulator’s action.

“The company firmly believes that the order from SEBI has no direct bearing on the fund-raising exercise,” ZEEL said in a statement. It added that it would take all necessary steps to complete the issue and strengthen its financial position.

The statement comes after SEBI issued a final order on July 31 in a case involving the alleged unauthorised use of a ZEEL property in Hyderabad as collateral for loans raised by promoter-linked Essel Group entities.

Under the order, SEBI has barred ZEEL from accessing the securities market for two months. Founder and Chairman Emeritus Subhash Chandra and Managing Director and CEO Punit Goenka have separately been prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, for one year.

The regulator has also imposed a combined monetary penalty of ₹1.48 crore on the company and the two individuals. SEBI said the property was used as security without the required approvals from the company’s board, audit committee and shareholders and that the arrangement was not adequately disclosed.

The timing has created an unusual situation for Zee. On July 31, the same day SEBI issued its order, ZEEL shareholders approved a proposed promoter-led capital infusion of about ₹3,143.5 crore.

The fundraising involves the issue of up to 24.95 crore fully convertible warrants to promoter group entity Sunbright Mauritius Investments Ltd at ₹126 per warrant. If converted, the warrants could give the promoter group a stake of up to 23.79% in Zee, according to the shareholder approval.

The structure requires the promoter entity to initially pay 25% of the issue price, with the balance payable when the warrants are converted into equity shares. The warrants can be converted within 18 months of allotment.

Zee has said the money will help strengthen its financial position and support investments across areas including digital entertainment, sports broadcasting, content, live entertainment and other growth initiatives. The company has also been expanding its presence in areas such as animation, visual effects and gaming.

However, the key question now is whether Zee can legally proceed with the fundraising while the SEBI restriction remains in force.

Legal experts cited by market reports have pointed to a potential conflict between the company’s shareholder approval and the regulator’s market-access restriction. Since ZEEL itself has been barred from accessing the securities market for two months, the order could create an immediate hurdle for the proposed preferential issue.

Sumit Agarwal, founder and partner at RegStreet Law Advisors, said the SEBI order creates a “serious implementation risk” for the fundraise. He noted that the restrictions also apply to Chandra and Goenka, who face a one-year prohibition from dealing in securities.

Agarwal said that even after ZEEL’s two-month restriction ends, questions could remain around the promoter-controlled entity subscribing to the issue. Depending on how the matter develops, the fundraising could be delayed, restructured or require fresh regulatory approvals and pricing.

Another securities-law practitioner, Anand Kankani, described the situation as unusual because the SEBI order came on the same day shareholders voted on the fundraising proposal.

He also pointed out that public shareholders own about 96% of ZEEL, making the proposed capital infusion particularly significant for investors. If the regulatory restriction prevents the company from raising funds, public shareholders could ultimately be affected, he said.

Zee, meanwhile, appears to be preparing to challenge or otherwise respond to the regulator’s findings. The company said it would take the required measures in accordance with law and protect the interests of its stakeholders.

In a separate filing, ZEEL said it had become aware of media reports about the SEBI order on July 31 and August 1, but the complete order became available only after it was uploaded on SEBI’s website on August 1. The company said the order was formally served on it at 8 pm on August 1 and that it was evaluating its contents and possible options.

The proposed ₹3,144-crore promoter fundraise is intended to provide additional capital for that next phase. But the SEBI order has introduced a regulatory complication that Zee will now have to resolve before the plan can move forward smoothly.

For investors, the immediate focus will be on Zee’s legal response, whether it seeks relief from the Securities Appellate Tribunal (SAT) and whether the market-access restriction is stayed or modified.

Zee remains confident that the SEBI order does not directly derail the fundraising exercise. Yet the final outcome will depend not only on shareholder approval, but also on the company’s ability to navigate the regulatory restrictions and secure the necessary legal relief, if required.

 

 

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Corporate

ITC shares rise 4% as cigarette volumes show resilience

ITC shares bounced back sharply on Monday, August 3, after analysts found some comfort in the company’s better-than-feared cigarette volumes despite a steep hit to earnings from higher taxes. The ITC share price climbed as much as 4% to ₹292.45 on the BSE in early trade, making the stock one of the top gainers on the Sensex.

The rally came even though ITC’s June-quarter results showed a significant decline in profitability. Investors appear to be looking beyond the weak Q1 FY27 numbers and focusing instead on whether the worst of the cigarette tax shock is now behind the company.

That shift in sentiment is important for ITC, which has faced considerable pressure since the government announced higher taxes on cigarettes. The stock had fallen around 30% in calendar 2026 up to July 31 and touched a 52-week low of ₹275 on June 4. Against that backdrop, Monday’s recovery reflects renewed hopes that the company can gradually rebuild cigarette earnings.

The biggest positive from the Q1 results was cigarette volume. ITC’s cigarette volumes declined by around 4-5% during the April-June quarter, according to analysts at ICICI Securities. That was significantly better than the 8-10% decline the Street had expected.

For investors, the volume number matters because it suggests that consumers have not moved away from ITC cigarettes in large numbers despite higher prices. It also indicates that the company’s strategy of raising prices gradually may be helping it protect its market share.

The cigarette business, however, remains under pressure. ITC’s cigarette earnings before interest and tax, or EBIT, declined 35% year-on-year during Q1 FY27. The decline was particularly sharp in April, but profitability improved month-on-month as staggered price increases started taking effect.

ITC has not passed the entire tax burden on to consumers at one time. The overall tax impact on the cigarette business is about 35%, while the company has so far passed on roughly two-thirds of that increase through price hikes.

That leaves ITC with more pricing action ahead. Analysts expect the company to continue raising cigarette prices gradually through the second and third quarters of FY27. While this could put some additional pressure on cigarette volumes in the near term, the strategy is also aimed at protecting demand and limiting the shift towards cheaper or illegal cigarettes.

Nomura has taken a more optimistic view of the recovery. The brokerage expects gradual price hikes to improve ITC’s unit economics while keeping the impact on volumes manageable. It expects ITC to bring cigarette EBIT per stick back towards pre-tax-hike levels by Q4 FY27.

That is a much faster recovery than Nomura had previously anticipated. The brokerage has raised its target price for ITC to ₹340 from ₹300 and upgraded the stock, reflecting what it sees as a more favourable risk-reward balance. Nomura expects cigarette volumes and EBIT to decline 5% and 20%, respectively, in FY27, before recovering in FY28.

ICICI Securities, meanwhile, expects cigarette volumes to face greater pressure in Q2 and Q3 as more of the tax increase is passed on through prices. However, it expects the business to start seeing margin recovery from Q4 FY27 as the higher prices and volumes begin to normalise.

The brokerage also pointed to encouraging trends outside cigarettes. ITC’s FMCG business continues to show strong margin improvement, helped by a better balance between pricing and volumes. The paperboards business is also recovering sequentially, supported by a more favourable input-cost environment.

The strength of ITC’s diversified business is becoming increasingly important for investors. While cigarettes remain the company’s biggest earnings driver, the FMCG portfolio, paperboards and other businesses provide additional support when the cigarette segment faces regulatory or tax pressure.

Still, not all brokerages are convinced that the recovery will be smooth. Motilal Oswal Financial Services retained a Neutral rating with a target price of ₹300. It said ITC’s slower-than-expected cigarette price increases could protect consumer volumes and reduce the shift to illegal cigarettes, but would also keep earnings under pressure in the near term.

The brokerage expects cigarette revenue and EBIT to remain volatile while ITC works through the transition. It also cautioned that pressure on the cigarette business could offset the benefits coming from the recovery in FMCG and paper businesses.

This leaves investors with a fairly clear set of numbers to watch in the coming quarters: cigarette volumes, the pace of price hikes and the recovery in cigarette margins. The immediate earnings picture may remain weak, but the market is increasingly willing to look beyond one difficult quarter.

For ITC, the challenge is now about finding the right balance. Passing on higher cigarette taxes too quickly could hurt volumes and push consumers towards cheaper alternatives. Moving too slowly, on the other hand, would prolong the pressure on margins and profitability.

The real test will come over the next two quarters. If ITC can gradually recover cigarette profitability without losing significant volumes, the current tax-related earnings setback could prove temporary. For now, the market appears to be betting that the worst may have passed and that ITC shares could have room to recover as the company works through the cigarette tax impact.

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Corporate

Sensex rises 600 points, Nifty surpasses 24,750

Indian benchmark indices extended their winning run on Monday, August 3, as strong buying across key sectors lifted the Sensex by 600 points and pushed the Nifty 50 above the 24,750 mark. The rally reflected a combination of positive global cues, softer crude oil prices and growing optimism over corporate earnings.

The broader market also remained firm, with buying seen across several sectors as investors continued to take fresh positions in equities.

A sharp fall in crude oil prices provided an important boost to sentiment. Brent crude prices dropped after US President Donald Trump indicated that talks with Iran could take place, easing concerns over a wider escalation in West Asia. Lower crude prices are particularly positive for India, which imports a large portion of its oil needs. Cheaper oil can help contain the import bill, ease inflationary pressure and reduce input costs for several businesses.

The improvement in geopolitical sentiment also supported global markets and encouraged investors to return to riskier assets. For Indian equities, the combination of favourable global cues and strong domestic buying helped sustain the upward momentum through the session.

Among individual stocks, ITC was one of the prominent gainers on the benchmark indices. The stock advanced despite the company’s quarterly profit declining, with investors focusing on its operating performance and cigarette business. Divi’s Laboratories was another strong performer, gaining more than 3% as investors responded positively to its quarterly performance.

Financial stocks also contributed significantly to the market’s gains. Several banking and financial services stocks traded higher, helping the Nifty maintain its upward momentum. SBI, ICICI Bank and IndusInd Bank were among the stocks that attracted buying interest.

The broader market also witnessed strong stock-specific action. Urban Company surged around 16% after its quarterly results, highlighting the growing investor appetite for companies reporting strong business momentum. The gains in mid-cap and small-cap counters added to the overall positive tone in the Indian stock market.

However, not every stock participated in Monday’s rally. Zee Entertainment emerged as one of the biggest losers, with the stock plunging around 11%. The sharp decline came after market regulator Sebi imposed a penalty and barred the company’s CEO and founder from the securities market for one year over regulatory violations.

The fall in Zee Entertainment showed that stock-specific developments continued to influence trading even as the broader market remained firmly positive. Investors remained selective, particularly in stocks facing regulatory or company-specific concerns.

The ongoing Q1 earnings season was another key factor shaping market sentiment. Investors are closely watching quarterly results for signs of sustained earnings growth and stronger demand. Results from sectors such as banking, automobiles, pharmaceuticals and consumer businesses are expected to influence the direction of individual stocks as well as the broader market.

The market‘s recent gains have also been supported by expectations that domestic economic conditions will remain resilient. Strong consumption, improving corporate performance and continued investment activity have helped Indian equities maintain their appeal despite global uncertainties.

Monday’s rally, however, does not eliminate the possibility of near-term volatility. Investors will continue to track crude oil prices, developments in US-Iran relations, foreign institutional investor flows, the rupee and upcoming corporate earnings. Global market movements will also remain important as traders assess the impact of geopolitical developments and changing expectations around interest rates.

With the Nifty 50 now firmly above 24,750, market participants will watch whether the index can sustain the momentum in the coming sessions. The Sensex’s 600-point gain also reflects a renewed appetite for equities after recent bouts of volatility.

The market breadth also remained encouraging, with buying extending beyond the heavyweight stocks. Investors appeared more comfortable taking positions in sectors that could benefit from lower input costs and steady domestic demand. Oil-sensitive sectors gained from the decline in crude prices, while pharmaceutical and financial stocks also supported the broader indices.

At the same time, traders remained cautious about elevated valuations in parts of the market. The sharp moves in individual stocks following quarterly results showed that investors are increasingly differentiating between companies on the basis of earnings quality, growth prospects and management commentary. This could keep stock-specific volatility high through the earnings season.

For the coming sessions, the focus will remain on corporate results, foreign fund flows, crude oil prices and global market cues. Any sustained easing in geopolitical tensions could provide further support to Indian equities, while a reversal in crude prices or renewed global risk aversion could limit the market’s gains.

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Technology

JioTag 2 brings Android, iPhone tracking for ₹1,249

Reliance Jio has launched the JioTag 2 in India, bringing a key upgrade to its Bluetooth tracker lineup: support for both Apple Find My and Google Find Hub. Priced at ₹1,249, the new Jio Bluetooth tracker is designed to help users locate everyday belongings such as keys, wallets, bags, luggage and other valuables.

The biggest attraction of the JioTag 2 is its cross-platform compatibility. Unlike earlier Jio tracking products that were designed around individual smartphone ecosystems, the new tracker can work with both Android and iPhone users. This makes it particularly useful for households where people use different smartphone platforms.

The launch comes as Bluetooth item trackers become increasingly popular among consumers looking for a simple way to recover misplaced belongings without investing in a dedicated GPS tracking device.

The JioTag 2 price in India is ₹1,249. The tracker is available in Black, Green and Red colour options, with sales beginning through online retail channels. Reports also indicate that select offers could bring the effective price down further.

At ₹1,249, Jio is positioning the device as an affordable alternative to premium Bluetooth trackers. The company is also attempting to make the product more versatile by supporting both major smartphone tracking ecosystems.

The JioTag 2 does not require a SIM card or a separate mobile data subscription. Instead, it uses Bluetooth connectivity and the wider device networks operated by Apple and Google to help locate a tagged object.

The support for Apple Find My and Google Find Hub is the defining feature of the JioTag 2.

For iPhone users, the tracker can be connected to Apple’s Find My network. Android users can use Google’s Find Hub to locate the tag. When the tracker is nearby, users can use their smartphone to locate it and activate its built-in alarm.

If the JioTag 2 is outside Bluetooth range, its location can potentially be updated when compatible devices participating in the relevant network detect the tag. This allows a misplaced item to be located even when the owner’s smartphone is not physically nearby.

This is different from GPS tracking. The JioTag 2 itself does not continuously determine its position through GPS. Instead, it depends on Bluetooth and participating devices to relay location information.

For consumers, that means the tracker is best suited to belongings that are frequently misplaced or carried around, rather than applications requiring continuous real-time location monitoring.

The new JioTag 2 features include a loud 120dB speaker that can help users locate an item when it is within Bluetooth range. Once activated through the relevant tracking service, the alarm can make it easier to find a tag hidden inside a bag, under furniture or among other belongings.

The device also supports Lost Mode, allowing users to take advantage of the broader tracking network when an item moves outside the immediate Bluetooth range.

Another useful feature is its replaceable battery. Reports indicate that the JioTag 2 can provide about one year of battery life, while the included spare battery can extend total usage to up to two years. Users can replace the battery instead of replacing the entire tracker.

The tracker also carries an IP64 rating for protection against dust and water splashes, making it suitable for everyday use with bags, luggage and other personal belongings.

The launch naturally puts the JioTag 2 vs AirTag comparison in focus. Apple’s AirTag remains closely integrated with the Apple ecosystem, while Jio’s latest tracker is attempting to appeal to a wider audience by supporting both Apple and Google networks.

The price is another major difference. At ₹1,249, JioTag 2 is positioned below Apple’s AirTag, although pricing can vary depending on offers and retailers.

The JioTag 2’s cross-platform support could therefore be particularly attractive to users who regularly switch between Android and iPhone devices or families that use a mix of both.

However, buyers should understand that neither Bluetooth trackers nor community-based finding networks are the same as GPS trackers. Their effectiveness outside Bluetooth range depends on compatible devices being available nearby.

Jio had previously introduced separate products aimed at different ecosystems, including JioTag Go for Android and JioTag Air for Apple’s Find My network. The JioTag 2 brings these capabilities together into one device.

That makes the latest launch more than a routine upgrade. For Jio, it represents an effort to remove one of the biggest inconveniences associated with Bluetooth trackers: choosing a product based on the smartphone platform being used.

For consumers, the proposition is straightforward. Attach the JioTag 2 to your keys, wallet, backpack or suitcase, connect it to your phone and use the relevant finding network when something goes missing.

With a ₹1,249 price tag, Apple Find My and Google Find Hub compatibility, a loud alarm, replaceable battery and IP64 protection, the JioTag 2 gives Indian consumers another option in the growing smart tracker and Bluetooth tracker market. Its biggest selling point, however, could be its ability to bridge the Android-iPhone divide in one affordable device.